The futures traded lower, as we look to end a big earnings week that featured a tech-wreck, in which almost every big technology leader posted horrible results and gave very gloomy forward guidance. The Dow Jones industrials and the Russell 2000 closed up, while both the Nasdaq and S&P 500 ended lower again, after the third-quarter gross domestic product numbers came in slightly higher than anticipated. Some top economists were quick to point out “government outlays” and other one-time items that increased the figure by 2.4%.
Once again, the big story that provided something of a tailwind for stocks was the continued big buying across the Treasury complex, with yields moving lower on the five-, 10- and 30-year maturities. The 10-year yield slipped back below 4%, closing at 3.94%. That is a remarkable move, considering the bond traded intraday at 4.34% just 10 days ago. The inversion with the two-year note stayed in place, as the short paper closed at 4.34%.
Brent and West Texas Intermediate crude both ended higher, with the former closing back in on the $100 level. Natural gas traded down 3% on the day, as prices in Europe slumped, a move that analysts attributed to unseasonably warm weather. Gold closed flat, while Bitcoin traded lower after a big gain earlier in the week.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Friday, October 28, 2022.
AGNC Investment Corp. (NASDAQ: AGNC): Though Barclays upgraded the mortgage real estate investment trust to Overweight from Equal Weight, it lowered its $12 target price to $9. The consensus target is $9.39. The stock ended Thursday trading at $7.89.
Align Technology Inc. (NASDAQ: ALGN): Goldman Sachs slashed its $250 target price on the Sell-rated shares to $165. The consensus target is $302.70 for now. The shares closed on Thursday at $181.53, down a stunning 18% for the day after posting a dismal earnings report.
Arcellx Inc. (NASDAQ: ACLX): Needham started coverage with a Buy rating and a $31 target price. The consensus target is $30.25. The stock closed on Thursday at $20.40.
ARCO Platform Ltd. (NASDAQ: ARCE): The Goldman Sachs downgrade to Neutral from Buy included a target price cut to $12 from $19. The consensus target is $21.23. Thursday’s close was at $11.17.
Biogen Inc. (NASDAQ: BIIB): Goldman Sachs hiked its $220 share price to $370 while reiterating a Buy rating on the biotech stock The consensus target is $294.81. The shares closed on Thursday at $277.87.
Cano Health Inc. (NYSE: CANO): Credit Suisse lowered its Outperform rating to Neutral and halved the $10 price target to $5. The consensus target is $9.08. Thursday’s $3.64 close was down 4% for the day, likely on the downgrade.
Carnival Corp. & PLC (NYSE: CCL): Stifel maintained a Buy rating with a $17 target price. The consensus is up at $30.11. The stock closed on Thursday at $8.65.
Century Communities Inc. (NYSE: CCS): As B. Riley Securities downgraded the stock to Neutral from Buy, it dropped its $52 target price to $44. The consensus target is $66.50. Thursday’s close at $42.57 was down over 9% on the day, despite beating analyst expectations for sales and earnings.
Copa Holdings S. A. (NYSE: CPA): UBS raised its Neutral rating to Buy, and the target price went from $79 to $120, which would be a new 52-week high. The shares closed at $74.62 on Thursday.
Domino’s Pizza Inc. (NYSE: DPZ): The Zacks Bear of the Day has fallen short of earnings and revenue estimates in four consecutive quarters, points out the analyst. Shares have traded as high as $567.57 in the past year but closed most recently at $331.50. That is down more than 15% in the past 90 days.
Evercore Inc. (NYSE: EVR): Keefe Bruyette downgraded the boutique Wall Street firm to Market Perform from Outperform. It also raised its $106 target price to $109, further above the $104.83 consensus target. Thursday’s close was at $100.99.
FormFactor Inc. (NASDAQ: FORM): Stifel downgraded the stock from Buy to Hold with a $30 target price. The consensus target is $40.50 for now. The stock closed 24% lower on Thursday at $20.59, despite an earnings beat, as revenues declined year over year.
HF Sinclair Corp. (NYSE: DINO): Zacks named this fuel and chemicals producer as its Bull of the Day stock. The analyst makes the case that, given the strong earnings outlook, the recent run could easily continue. Shares last closed at $61.44, which is up almost 30% in the past 90 days.
Lithium Americas Corp. (NYSE: LAC): B. Riley Securities resumed coverage with a Buy rating but trimmed the $44 target price to $41. The consensus target is $38. The stock ended Thursday trading at $25.25.
Masco Corp. (NYSE: MAS): RBC Capital Markets lowered its Outperform rating to Sector Perform and cut its $57 target price to $47. The consensus target is $58.38. Thursday’s close was at $46.02.
Medpace Holdings Inc. (NASDAQ: MEDP): UBS’s upgrade to Neutral from Sell included a target price boost to $238 from $142. The consensus target is just $186.33. Thursday’s final trade was for $216.20 a share.
Mercury Systems Inc. (NASDAQ: MRCY): Raymond James initiated coverage with an Outperform rating and a $55 target price. That compares with a $57.10 consensus target and Thursday’s final print of $48.79.
Meta Platforms Inc. (NASDAQ: META): Goldman Sachs reiterated a Buy rating on the beleaguered social media giant but lowered its $200 price target to $165. The consensus target is $207.41 for now. The stock was destroyed on Thursday, closing 25% lower at $97.94, after very disappointing results and guidance were posted.
Portland General Electric Co. (NYSE: POR): When Credit Suisse upgraded the stock to Neutral from Underweight, it also bumped its $43 target price up to $46. The consensus target is higher at $50.22. The stock closed on Thursday at $44.42.
Renasant Corp. (NASDAQ: RNST): The Raymond James upgrade was from Market Perform to Outperform with a $41 price target. The consensus target is $36.43. The stock closed on Thursday at $37.25, which was up close to 5% on the day.
Seagate Technology Holdings PLC (NASDAQ: STX): Goldman Sachs lowered its $71 target price on the hard-disk drive giant to $61 while staying with a Neutral rating. The shares have traded as high as $117.67 in the past year but closed most recently at $51.96.
Teradyne Inc. (NASDAQ: TER): Craig Hallum upgraded the stock to Buy from Hold and has a $120 target price. The consensus target is $104.89. The stock closed on Thursday at $79.86.
Trinity Capital Inc. (NYSE: TRN): Compass Point downgraded the stock to Neutral from Buy and cut the $18 target price to $12.75. The consensus target is $16.36. The stock closed on Thursday at $26.92, up 7% for the day after mixed earnings results but improved operating numbers.
Vertiv Holdings Co (NYSE: VRT): Cowen’s upgrade to Outperform from Market Perform came with a target price boost to $40 from $11.75. The consensus target is $14.59. The stock closed on Thursday at $14.79.
V.F. Corp. (NYSE: VFC): J.P. Morgan downgraded the shares to Underweight from Neutral and has a $29 price target. The consensus target is up at $38.30. The stock closed on Thursday at $27.42.
Waste Management Inc. (NYSE: WM): Stifel reiterated a Buy rating and lifted its $175 target price to $185. The $175.56 consensus target also compares with Thursday’s final print of $158.30.
Wingstop Inc. (NASDAQ: WING): Goldman Sachs maintained a Buy rating on the popular restaurant chain. It also boosted its $141 price target to $160, well above the $148.40 consensus target. The stock closed on Thursday at $158.39.
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Thursday’s early top analyst upgrades and downgrades included Abbott Laboratories, Biohaven, Edwards Lifesciences, Enphase Energy, Halliburton, Invesco, Liberty Energy, Mattel, Netflix, Permian Resources, Range Resources, Roblox, Synchrony Financial and Visa. Analyst calls seen later in the day were on Annaly Capital Management, Livent, Masco, Meta Platforms, ServiceNow, Pinduoduo, Seagate Technology, Thermo Fisher Scientific and more.
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